Pretty much, yes. It's also usually the "settlement account" for everything that happens in your account. When you sell a mutual fund, the proceeds of the sale typically end up in that account.SpaceSashimi wrote:Can someone explain the Vanguard Prime Money Market Fund in depth to me. Is it just a temporary account to hold your money until you know what to do with it?
For over thirty years, from 1975 to 2008, it always did, often quite a lot. It was earning around 5% in 2007. Like most money market accounts, it always used to earn more than bank accounts.Does it make interest if left there awhile?
Because it's a mutual fund and mutual funds are required to give that information. However, all stated performance numbers are after expenses, so the 0.01% you see is what you get. You aren't losing 0.15% per year in the fund.Why does it have an expense ratio?
They used to be great places to keep cash. Not any more.Should I keep anything in it?
nisiprius wrote:If you link your bank account, you can purchase mutual funds directly out of your bank account but there's a delay. Money that has been moved into the money market fund, and that is showing as available for purchase, can be used to purchase a mutual fund immediately.
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